House Purchase - Financing and Valuation - Berlin Area

Regarding the actual topic, I say: go for it. Equity is there, you live modestly, and by the time of the second income, you’ll manage it.

Sure? It’s about roughly €500,000 loan with a single earner making €4,400 for a 60-year-old, 100 sqm house that needs energy-efficient renovation. With 100 sqm, you’d also plan an extension right away and then you’re at about €600,000 loan. Some call that a bottomless pit.

[*]The property is located within Berlin and is about 60 years old. The house is in good condition, so the renovation costs are manageable. However, the bank values the property significantly below the current price. approx. 350K <-- which is an unrealistic price for Berlin. My question is, how can I estimate the purchase price? According to the standard land value, the plot would be worth about 200-250K for approx. 500sqm. In the same district, newer terraced houses are traded between 450-500K.

The necessary energy-related renovation, electrical work, etc. have already been mentioned. If I read correctly, you are paying for the old building (as currently usual in the bubble) the market price of a new terraced house (or what do you mean by newer)? Then you already know why the bank is lowering the price assessment. Today it may still be the case that you achieve this price on the market. Maybe in 3-4 years, no longer. You have to cover and pay this risk with equity yourself; the bank will not include it in their books. The approvals & assessments are becoming more cautious, which is only logical. Interest rates have stopped falling, the risk of inflation is rising, property prices continue to increase. How is it with your second income? If there is something additional there, it would be feasible – IF you clarify the renovation costs beforehand with an expert.

Does Berlin mandate energy renovation?

Otherwise, one could just leave it as it is. Many people really don’t care about the topic of energy efficiency. Recently, I experienced it again with a colleague: bought an old house, quickly painted it, and moved in. He could have also afforded a renovation.

Is Berlin obligated to do energy-efficient renovations?

Building Energy Act Renovation obligation upon owner change from 2020.
To my limited knowledge, this does not concern the facade?!
But honestly: if you have to do it halfway anyway, then you might as well do everything or as much as possible with the money you get. Otherwise, it remains a patchwork.

I see it like many others here. 500k loan with 4400 net income is too ambitious. And I expect a project volume of 650k€. Flat roof without a base fits it well

[*]Property price: 500K <- From acquaintances
[*]Equity: approx. 170K
[*]Loan amount: 360/370K

[..]
The house is in good condition, so the renovation costs are manageable.

Why is there a discussion here about a complete renovation and/or extension when the thread starter considers the house to be in good condition for personal use and only wants to renovate?